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Modelling embedded risk in peasant agriculture: methodological insights from northern Malawi

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  • Andrew Dorward

Abstract

Using a linear‐programming model of farming systems in northern Malawi, the conditions under which peasant farm‐household models may need to allow for embedded risk are investigated, Tactical, sequential responses to uncertainty are found to be more important to labour‐scarce households with limited access to capital and to credit markets. Compared with semi‐sequential programming, discrete stochastic programming (DSP) provided more efficient solutions for problems involving embedded risk. There may be intuitive advantages in presenting results from DSP models in terms of a semi‐sequential strategy.

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  • Andrew Dorward, 1999. "Modelling embedded risk in peasant agriculture: methodological insights from northern Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 21(2), pages 191-203, October.
    • Handle: RePEc:bla:agecon:v:21:y:1999:i:2:p:191-203
    DOI: 10.1111/j.1574-0862.1999.tb00593.x
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    4. Arriaza, M. & Gomez-Limon, J. A., 2003. "Comparative performance of selected mathematical programming models," Agricultural Systems, Elsevier, vol. 77(2), pages 155-171, August.
    5. Marnie Griffith & Gary Codner & Erwin Weinmann & Sergei Schreider, 2009. "Modelling hydroclimatic uncertainty and short-run irrigator decision making: the Goulburn system ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 565-584, October.
    6. Marianne Lefebvre & Estelle Midler & Philippe Bontems, 2020. "Adoption of Environment-Friendly Agricultural Practices with Background Risk: Experimental Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 76(2), pages 405-428, July.
    7. Busse, Matthias & Groizard, José Luis, 2005. "FDI, Regulations and Growth," Conference papers 331335, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    12. Torkamani, Javad, 2006. "Measuring and Incorporating Farmers’ Personal Beliefs and Preferences about Uncertain Events in Decision Analysis: A Stochastic Programming Experiment," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(2), pages 1-15.

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